Salary Calculator

Understanding your salary and deductions

When you receive a salary, several deductions are taken before the money reaches your bank account. These usually include Income Tax, National Insurance, pension contributions and, if applicable, student loan repayments.

Income Tax

Income Tax is calculated using tax bands set by the UK government. For most employees, some income is covered by the Personal Allowance before tax is charged. The rest is taxed using the basic, higher or additional rate depending on how much you earn.

National Insurance

National Insurance contributions help fund state benefits and the State Pension. Employees usually pay Class 1 National Insurance through payroll, while self-employed workers may have different National Insurance obligations.

Pension contributions

If you are enrolled in a workplace pension, contributions are usually taken from your gross salary before your final take-home pay is calculated. Pension deductions can reduce your monthly pay but help build long-term retirement savings.

Student loan repayments

If you have a student loan, repayments are normally taken only when your income is above the threshold for your repayment plan. Different plans use different thresholds, so selecting the correct plan is important.

Employed and self-employed income

Select employed if you are paid through PAYE, or self-employed if you want to estimate take-home income from annual profit before tax. Self-employed users may also need to account for business expenses, payments on account and Self Assessment rules.